Question 6 10 Marks PART A Is there any relationship between the two regulatory bodies: Financial Reporting Council and Australian Accounting Standards Board? Justify your answer. 4 Marks PART B On 1 July 2019 Linda Ltd acquires 30 per cent of the issued capital of Prince Ltd for a cash consideration of $360,000. At the date of acquisition, the share capital and retained earnings of Prince Ltd are as follows: Share capital Retained earnings Total Shareholders' equity $240.000 $960.000 $1,200,000 During the 2019-2020 financial year, Prince Ltd records an after tax profit of $180,000. Prince Ltd pays a dividend of $100,000. On 30 June 2020, Prince Ltd revalued its land upwards by an amount of 10,000. The corporate tax rate is 30 per cent. Note: Linda Ltd does not prepare consolidated financial statements. Required: Prepare the journal entries using the equity methods of accounting for the investment in Prince Ltd for the year ending 30 June 2020. 6 Marks Question 6 10 Marks PART A Is there any relationship between the two regulatory bodies: Financial Reporting Council and Australian Accounting Standards Board? Justify your answer. 4 Marks PART B On 1 July 2019 Linda Ltd acquires 30 per cent of the issued capital of Prince Ltd for a cash consideration of $360,000. At the date of acquisition, the share capital and retained earnings of Prince Ltd are as follows: Share capital Retained earnings Total Shareholders' equity $240.000 $960.000 $1,200,000 During the 2019-2020 financial year, Prince Ltd records an after tax profit of $180,000. Prince Ltd pays a dividend of $100,000. On 30 June 2020, Prince Ltd revalued its land upwards by an amount of 10,000. The corporate tax rate is 30 per cent. Note: Linda Ltd does not prepare consolidated financial statements. Required: Prepare the journal entries using the equity methods of accounting for the investment in Prince Ltd for the year ending 30 June 2020. 6 Marks